AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A Nigerian fintech usually pays a US-based hire in one of three ways: as a contractor invoicing in dollars, through Nigerian payroll in naira, or through a US entity in its group that runs US payroll. Only the last normally produces a Form W-2. With the first two you are typically responsible for paying US tax yourself during the year, and the IRS looks at the real working relationship, not the label, to decide whether you are an employee.
A Lagos fintech offers you a senior role and says you can stay in Houston or Atlanta. The offer letter covers the salary; it rarely explains how the money will reach you or which country's payroll you are on. Those details decide your take-home pay, your US tax filing and even your Social Security record. This guide sets out the common set-ups. It is information, not tax or legal advice.
The three common set-ups
1. Contractor, paid in dollars
The company treats you as an independent contractor. You invoice monthly, it wires dollars from a domiciliary account or pays through a US parent. Nothing is withheld for the IRS. Your pay is business income on Schedule C, with self-employment tax on the net profit.
2. On Nigerian payroll
The company runs you through its Nigerian payroll in naira, sometimes with part in dollars. Nigerian deductions may be taken by habit, but Nigeria taxes by residence and where the work is done. PwC's residence summary (reviewed 29 May 2026) says employment income is derived from Nigeria where the employee is resident and the duties are performed wholly or partly in Nigeria, among other conditions. If you live and work in the US, raise this with payroll and keep records of where you worked.
3. Through a US entity in the group
If the fintech has a US company, that company can hire you on US payroll. The IRS hiring guide says employers have each new hire complete a Form W-4 and report the employee's name and Social Security number on Form W-2. Federal income tax, Social Security and Medicare are then withheld as for any US job.
How the set-ups compare
| Contractor | Nigerian payroll | US entity payroll | |
|---|---|---|---|
| Form you receive | Possibly none, or 1099-NEC from a US entity | Nigerian payslip | W-2 |
| US tax withheld | No | No | Yes |
| US Social Security | Via self-employment tax | Unclear; take advice | Via payroll (FICA) |
| Who handles quarterly US tax | You | You | Employer withholds |
| Currency | Usually USD | Usually NGN | USD |
Social Security and Medicare
IRS Publication 54 says Social Security and Medicare taxes may apply to wages regardless of where the services are performed, and sets out when an "American employer" or a foreign affiliate is covered. A Nigerian company with no US entity is not an American employer under that definition. Whether a foreign employer with no US presence should be paying US Social Security on work done in the US is a technical question to settle with a US tax professional before you accept. As a contractor, self-employment tax builds your Social Security record instead; see Social Security credits from self-employment.
Questions to ask before you sign
- Which entity employs or engages you, and in which country is it registered?
- Will you be on payroll or invoice as a contractor? Ask for this in writing.
- Which currency, which account, and on what day each month?
- Will anything be deducted in Nigeria, and will you get receipts?
- Who pays bank charges on international transfers?
- If you are a contractor, does the rate allow for self-employment tax and the lack of benefits?
A worked example, labelled as such. An offer of $72,000 a year as a contractor is not the same as $72,000 on US payroll. As a contractor you pay both halves of Social Security and Medicare through self-employment tax, which the IRS lists at 15.3%, and you fund your own health cover. Many contractors ask for a higher rate to cover the difference.
For more on each piece, see employee vs contractor, US tax on income from a Nigerian employer and getting paid by a Nigerian employer while living in the US.
Benefits and the rest of the package
Nigerian offer letters often include items that do not travel well: a pension under the Nigerian contributory scheme, HMO health cover usable only in Nigeria, a thirteenth-month payment, or allowances for housing and transport. Ask which of these apply to you in the US, and whether anything replaces them. Health cover is usually the largest gap for a US resident. Also ask how equity or share options are granted, by which entity, and how they are taxed in the US before you treat them as part of the pay.
Get the final arrangement in a signed contract before your first day, including the currency and account for pay; a verbal promise about future US payroll is easy to forget once you have started.
Where Pryme fits
If part of your pay arrives in naira, a Pryme account can receive it into NGN details and hold it until you choose to convert with Swap; the app shows the rate and the fee before you approve. Dollars can arrive into USD details in the same account. Employers can also run payroll from a Pryme Business Account.
Questions people ask
Can a Nigerian company employ me while I live in the US?
It can engage you, but how depends on its structure: as a contractor, on Nigerian payroll, or through a US entity in its group that runs US payroll.
Will I get a W-2 from a Nigerian employer?
Usually only if a US company in its group employs you on US payroll. A Nigerian company without a US entity does not normally issue W-2s.
Do I pay US tax on a salary from a Nigerian fintech?
If you are a US tax resident, yes; worldwide income is reported. Without US withholding, you usually need to pay during the year yourself.
Should I ask for a higher rate as a contractor?
Many do, because contractors pay self-employment tax, which the IRS lists at 15.3%, and fund their own benefits.
Sources
- IRS: Hiring employees (18 Feb 2026) · accessed Oct 2026
- IRS: Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad (Rev. Dec 2025) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual residence (reviewed 29 May 2026) · accessed Oct 2026
- IRS: Self-employment tax (Social Security and Medicare taxes) · accessed Oct 2026
- IRS: Independent contractor (self-employed) or employee? (reviewed 19 May 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.